ABI response to EC proposals on supervision of financial services

23/09/2009

Responding to the publication of the European Commission's proposals on the shape of financial services supervision in the European Union, Stephen Haddrill, the ABI's Director General, said:

"The ABI has consistently supported a stronger EU-level framework for the supervision of financial services. We believe that this will promote financial stability and competitive markets for financial service in Europe. We support the aims of the Solvency II Directive for the same reasons.

"However, we - in common with the whole of the European insurance industry - have serious reservations about the over-zealous interpretation of Solvency II, as proposed by Europe's regulators in CEIOPS. Excessive levels of prudential capital requirements will not be in the interest of consumers.

"We will therefore be looking carefully at the Commission's proposals on the supervisory framework to ensure that there are robust checks and balances on the powers to be devolved to regulators. We are also concerned that the macro-prudential body, the European Systemic Risk Board, is dominated by bankers and does not have enough insurance expertise."